Urban Development

The current pandemic hit the world at a moment when income inequality is at record highs, having been rising in America and in our urban areas for the last 40 years. The pandemic is disproportionally impacting the poorest; the looming global recession could worsen inequality further. As all levels of government develop responses, policies should prioritize not only helping those in need through this current crisis, but also establishing programs and policies that have a lasting impact on lowering inequality and providing needed support to our most vulnerable. We need the policies we adopt today to put us on a path to a more equitable future. Here are just three examples:

  1. Universal paid sick leave. The United States is one of only a few countries with no guaranteed paid sick leave. This tends to hurt the poorest households and fuels the spread of disease. When paid sick leave is available, it lowers disease transmissions, increases access to medical care, improves birth outcomes, and lowers stress. Recent legislation temporarily gave sick leave to some employees in the United States; this should be made a permanent and lasting feature of the American economy.
  2. Save jobs first. Unemployment in the United States has spiked more than other nations. Economists from UC-Berkeley recently explained that the U.S. has focused relief on unemployment benefits. Other countries, such as Britain and Denmark, are instead maintaining jobs by providing reduced pay to workers forced to stay home. Protecting jobs—particularly for small businesses less able to weather this crisis—would make restarting the economy faster and easier and would lessen the stress and anxiety that comes from losing employment. It would also immediately impact public health, since employed workers with health insurance would keep their insurance.
  3. Improve transit for everyone. The virus is hurting transit systems, as ridership has plummeted. But transit, during and after this crisis, is especially critical for lower-income individuals who need to access jobs or healthcare. As we help transit systems maintain operations and increase sanitation, we should take the opportunity to improve these systems, perhaps by expanding service to reduce crowding and lessen disease transmission. Walking and biking carry low risk of spreading disease; by widening sidewalks, expanding bike lanes, or dedicating streets to pedestrians, cities could not only expand safer options but invest in ones that promote a greener future as well.

Carolyn Kousky is Executive Director, Wharton Risk Management and Decision Processes Center, and a Penn IUR Scholar.

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